Story perspectives

Meta faces Oakland trial over youth addiction, COPPA violations

8/22/2026

Summary

Meta on Trial

A U.S. District Court in Oakland opened a trial against Meta.
Twenty-nine attorneys general, such as California, Colorado, Kentucky and New Jersey, sued Meta.
They allege Meta designed Facebook and Instagram to addict youths, harvest data, hide harms.
Meta collected data from children under 13 without consent, violating COPPA, and seeks $200 billion in damages.
Arturo Béjar testified about a ‘don’t ask, don’t tell’ policy as CEO Mark Zuckerberg will testify.

Summary

Meta Shares Plummet

Meta’s shares fell sharply when the Oakland child-safety trial opened, reflecting investor concern.
Jim Cramer said the Oakland venue is unfriendly to corporate defendants, worsening the stock drop.
Ross Gerber accused Meta of exploiting children to earn a trillion-dollar profit and demanded payment.
Analysts linked Meta’s profit decline partly to rising legal costs from multiple lawsuits.
Legal scholars warned the case could reshape how investors assess risk for big-tech platforms.

History

Historical Context

Since the 19th-century shift toward viewing children as a protected class—formalized by the Convention on the Rights of the Child and the 1998 Children’s Online Privacy Protection Act—regulators like the FTC have imposed penalties, such as a $43,792 fine and a 2007 MySpace settlement. In 2024, Meta faces a lawsuit from 29 state attorneys general, including California’s Rob Bonta, seeking $200 billion for alleged COPPA breaches.

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Meta on Trial

A U.S. District Court in Oakland opened a trial against Meta.
Twenty-nine attorneys general, such as California, Colorado, Kentucky and New Jersey, sued Meta.
They allege Meta designed Facebook and Instagram to addict youths, harvest data, hide harms.
Meta collected data from children under 13 without consent, violating COPPA, and seeks $200 billion in damages.
Arturo Béjar testified about a ‘don’t ask, don’t tell’ policy as CEO Mark Zuckerberg will testify.

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